India, US sign deals worth $ 6 billion

T V Parasuram in Washington

In a bid to boost to bilateral economic ties, India and the US signed five commercial deals worth $ 6 billion for projects in power, e-commerce and banking sectors during Prime Minister Atal Bihari Vajpayee's visit.

The agreements, including a $ 900 million loan by the US Exim Bank for purchase of US goods and services, were signed on Thursday night in the presence of Finance Minister Yashwant Sinha and US Commerce Secretary Norman Y Mineta.

Agreements were signed for setting up three private sector mega power palnts in India.

America's Southern Energy Inc will collaborate with the Reliance and Power Trading Corporation of India for the 3800 MW Hirma independent power project in Orissa.

The project, one of the largest in the world, will supply power to Punjab, Haryana, Madhya Pradesh, Gujarat and Rajasthan.

CMS Energy Corp signed a joint development agreement with the Power Trading Corporation of India Ltd for the Ennore Liquified Natural Gas terminal and 1850 megawatt power plant in Tamil Nadu.

CMS will oversee construction of the plant while Unocal, a co-investor, will coordinate construction of the LNG terminal and Power Trading Corp will buy the plant's output and sell it to Tamil Nadu, Kerala and Karnataka.

Synergies Energy Department signed a memorandum of understanding with the Infrastructure Development Finance Corp for funding the Shrinagar hydroelectric power plant in Uttar Pradesh.

Indian Internet Service Provider Satyam Infoway Ltd signed an MoU with US Business Network Inc
to establish a business-to-business e-commerce joint venture for cross-border trade. The Exim Bank agreement provides loan for three projects.

Under a $ 500 million memorandum of understanding with the State Bank of India, financing will be made available to small and medium-sized Indian businesses to help them buy US goods and services.

Another memorandum covers a $ 150 million credit facility, under which Bank of America would be designated a guaranteed lender, as well as $ 150 million to enable the Industrial Development Bank of India to act as a guaranteed lender to support purchases of US products.

A third document will allow India's Export-Import Bank to provide financing to Indian firms as part of a $ 500 million memorandum of understanding signed last year.

PTI

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